Ask Developments has secured a major prelet at its First Street scheme in Manchester, enabling the next 220,000 sq ft phase of the £550m project.
Russian energy giant Gazprom wants at least 40,000 sq ft of new-build office space at the development, along with options on a further 15,000 sq ft.
Its negotiations for a design-and-build agreement at the scheme have prompted Ask to seek development finance to build a further 165,000 sq ft at the site.
Gazprom, currently based in Orchard Street’s Bauhaus building, wants a 15-year lease with a break at 10 years, at a rent of just under £25 per sq ft. It hopes to take occupation in 2017.
The deal would be one of the North West’s largest lettings this year.
To capture the deal, Ask has offered the energy company short-term expansion space at Number One First Street, which is already complete.
It will be the third significant deal at Ask’s First Street this year, following a 60,000 sq ft letting to Trader Media and a 65,000 sq ft letting to Ford Credit.
A source said: “First Street has been turned around in the past six months, and this is another huge unexpected bonus.”
Gazprom has considered several options in Manchester, including One New Bailey in Salford, a development by Muse, Legal & General and the HCA. It also shortlisted Benson Elliot’s 55 Princess Street.
Savills and CBRE act for Ask on First Street; CBRE is advising Gazprom.
chris.berkin@estatesgazette.com
